Insuring risk is risky business!  As the insurance industry adjusts to a new environment of low asset returns and stricter regulation, insurers have few illusions about the challenges ahead. In an increasingly competitive world, forecasting the future is risky. Ernst & Young’s survey “Business Pulse: top 10 risks and opportunities for insurance in 2013 and beyond” reveals the current thinking and expectations of executives across the globe.

Insurance is a highly competitive business and keeping the price paid by insurance consumers reasonable is critical to an insurer’s ultimate success. Finding the best solutions to a host of behind the scenes issues is the challenge.

Macroeconomic trends and a slow rate of growth are viewed as the leading risks for insurance companies. Customer focus – improved distribution and product development – dominates the list of opportunities. In their search for growth, insurance companies face a shortage of skills, data- and cyber-related threats and concerns about operational and reputational risk.

Here at the top 10 risks identified by the research of Ernst & Young:

1. Macroeconomic trends: how to deal with ongoing slower growth
2. Regulation: a broad set of new regulations are emerging as a major source of risk
3. Eurozone debt crisis: factoring in the global consequences of the crisis
4. Reputational risk: safeguarding your reputation
5. Corporate governance failures: with regulatory change, stakeholders seek confidence in corporate governance
6. Cyber-risk and data security: how to contain the growing threat
7. Talent recruiting skills: acquisition and retention of talent challenges insurers
8. Impact of tax and accounting changes: recent actions are closely tied to regulation risk
9. Operational risk: quantification of risk on the organization
10. Availability and cost of capital: a continuing concern and how to attract investors 

Source: Ernst & Young, Business Pulse - Insurance Report, June 2013